OT - Reagan's deregulation did cause the S&L crisis in the 80's

OT - Reagan's deregulation did cause the S&L crisis in the 80's: "The Effect of Deregulation - The S&L Crisis

- Deregulation practically eliminated the distinction between
commercial and savings banks.
- Deregulation caused a rapid growth of savings banks and S&L's that
now made all types of non homeowner related loans. Now that S%L's could
tap into the huge profit centers of commercial real estate investments
and credit card issuing many entrepreneurs looked to the loosely
regulated S&L's as a profit making center.
- As the eighties wore on the economy appeared to grow. Interest rates
continued to go up as well as real estate speculation. The real estate
market was in what is known as a "boom" mode. Many S&L's took advantage
of the lack of supervision and regulations to make highly speculative
investments, in many cases loaning more money then they really should.
- When the real estate market crashed, and it did so in dramatic
fashion, the S&L's were crushed. They now owned properties that they
had paid enormous amounts of money for but weren't worth a fraction of
what they paid. Many went bankrupt, losing their depositors money. This
was known as the S&L Crisis. "

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